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First Time Buyer (FTB) definition

Markie11
Posts: 128 Forumite

I want to know if anybody can provide me with a clear and correct definition of a First Time Buyer.
I currently have a mortgage on a house for which I've owned for the last 4.5 years. Since being the property the value has gone up but obviously back down. I expect at the present time, the outstanding amount on the mortgage matches the value, just about tittering on Negative Equity.
Our present plan is to re-locate back to where we were brought up to rejoin friends and family (we moved about 8 years ago, rented for a while then bought).
We're in the predictament that if we move, we need to have jobs in place before phyiscally moving back, we don't have a lot of savings to use as deposits on a new house but we do have parents who will put us up for a while until we have the jobs and money in place. Therefore we thought it would be best to sell up, settle the mortgage, go live with parents and save up as much as possible in this period to allow us to provide a decent deposit on another house. This leds to my question of 'what defines a first time buyer'. I have read somewhere that it is based upon your previous tenure. Does this mean that if we live as lodgers with our parents then would I be classed a first time buyer again?
Also if anybody can provide details on other ideas we've had about renting or getting a 'secret' lodger. I mean 'secret' in that the person/s lodging lives there all the time but I live there a few days while I do a temp commute until I find a job back at home.
I hope this helps. If you need me to confirm things then please ask.
I currently have a mortgage on a house for which I've owned for the last 4.5 years. Since being the property the value has gone up but obviously back down. I expect at the present time, the outstanding amount on the mortgage matches the value, just about tittering on Negative Equity.
Our present plan is to re-locate back to where we were brought up to rejoin friends and family (we moved about 8 years ago, rented for a while then bought).
We're in the predictament that if we move, we need to have jobs in place before phyiscally moving back, we don't have a lot of savings to use as deposits on a new house but we do have parents who will put us up for a while until we have the jobs and money in place. Therefore we thought it would be best to sell up, settle the mortgage, go live with parents and save up as much as possible in this period to allow us to provide a decent deposit on another house. This leds to my question of 'what defines a first time buyer'. I have read somewhere that it is based upon your previous tenure. Does this mean that if we live as lodgers with our parents then would I be classed a first time buyer again?
Also if anybody can provide details on other ideas we've had about renting or getting a 'secret' lodger. I mean 'secret' in that the person/s lodging lives there all the time but I live there a few days while I do a temp commute until I find a job back at home.
I hope this helps. If you need me to confirm things then please ask.
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Comments
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Every lender will have their own definition and you will need to ask each lender what there's is. It is as simple as that.
Presumably some lenders will have special deals only applicable to FTBs.
Some lenders may consider people who do not presently own a property, others may insist that they have never owned a property. As long as they explain what they mean by the expression when asked within reason they can say what they like.RICHARD WEBSTER
As a retired conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability for it.0 -
The question usually asked is "Have you ever owned a property before?"
Therefore for you to answer honestly you would usually not be a first time buyer although there are exceptions.
The deals available for ftb are rarely better than usual deals so it shouldnt matter too much.
Sounds like a good plan moving in with parents to save money.. harder than it sounds tho once you've moved in!!! (Parents will be parents!)0 -
Thanks for your assistance and advice.0
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